"The blood shall be a sign for you on the houses where you live; and when I see the blood I will pass over you, and no plague will befall you to destroy you when I strike the land..."
The lair can be found in the far south of Chrace. The approximate location is 20,000, 60,000, southeast of the Dark Elf Chapter 4 public quest, The Stone of Valtear. A series of rocky outcrops form stepping stones that allow access to the lair's entrance.
Killed Kelbrax drops 36 level rare (blue) chest